Connor Publishing's Preferred Stock Pays a Dividend of $1

question 74

Multiple Choice

Connor Publishing's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share.What is its effective annual (not nominal) rate of return?

• A) 6.62%
• B) 6.82%
• C) 7.03%
• D) 7.25%
• E) 7.47%

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